suppliers to airline companies have margins of > 16 %. the airlines themselves, well, sell em if you got em
Fresh off a battle with two activist hedge funds, United's board approved a stock buyback of $2 billion, or almost 13 percent of the company's market value. The airline said separately it appointed a 15th board member, healthcare executive Edward Philip, in agreement with the funds.
But investors appeared to focus more on United's months-long decline in passenger unit revenue. In the second quarter, the measure fell 6.6 percent from a year ago, and United forecast it will drop between 5.5 percent and 7.5 percent in the third quarter.
"Demand growth (is) not keeping pace with capacity growth," United said in a filing Tuesday.
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